Investment highlights: Laying out top overseas biomedical and rehabilitation events: On November 27, 2015, the company's wholly-owned subsidiary and Swiss Bayer reached a preliminary agreement on transferring part of Swiss Biotech's shares. The company plans to acquire 70% of Swiss Biotech's shares at a price not exceeding RMB 210 million. After this acquisition is completed, the company's wholly-owned subsidiary will become its controlling shareholder. Overseas rehabilitation business mergers and acquisitions are expected to expand further, making every effort to build the company's medical rehabilitation map in collaboration with domestic businesses. Swiss Paracelsus Suisse (Paracelsus Suisse) is the world's top biomedical rehabilitation center. It was founded in 1958. Its main business includes biomedicine, rehabilitation, and diagnostic medicine. The main treatment areas include cancer, autoimmune diseases, cardiovascular diseases, digestive tract diseases, infectious diseases, and anti-aging, etc., with a daily treatment capacity of about 400 people. The hospital's patients come from 81 countries, 90% are secondary clients, and require an appointment 3-4 months in advance. The average weekly cost of treatment for patients is about 8000 US dollars. This acquisition is also the company's second overseas acquisition after Rhine Hospital in Germany, showing the company's forward-looking vision of its layout in the field of rehabilitation. Through this acquisition, the company will actively absorb and introduce the advanced management system and leading biomedical technology system of Swiss hospitals, meet the treatment needs of domestic customers visiting high-end medical resources overseas, and at the same time introduce the hospital's tumor treatment, anti-aging, chronic disease treatment and rehabilitation, and biodentistry technology into China, and promote them in China in the form of training, cooperative research, joint venture hospitals, independent investment hospitals, etc.; at the same time, the company is expected to further lay out the rehabilitation industry at home and abroad, combined with the company's existing resources and strong resource integration capabilities, to lay out a comprehensive medical rehabilitation landscape; the company has deep medical resources in Chongqing Accumulation, and the leading layout of regionalized medical services is beginning to emerge. The company has a deep accumulation of medical resources in Chongqing. It has already launched the Kuanren Rehabilitation Hospital brand through cooperation with the Second Affiliated Hospital of Heavy Medicine in the early stages, and is currently operating well. The company is located in Yubei District of Chongqing, which is a key development district in Chongqing. The medical support measures have not yet been effectively improved. We expect that the company will first combine existing medical service resources and cooperate deeply with local medical institutions to actively develop specialist medical service business; at the same time, we believe that the company is expected to further expand the medical service layout in Chongqing and create a regional medical service leader; the main pharmaceutical industry is growing well, and is expected to lay out a forward-looking field for innovative drugs. With the merger and acquisition of Baisheng Pharmaceutical, the company's traditional dermatology drugs will be transformed into multi-department prescription drugs; with more varieties to be stored later, tirofiban is expected to be released during the bidding year; Ambroxol hydrochloride, fasudil, etc. will be marketed next year, and reserve varieties such as milinone injection and moxifloxacin are expected to be listed soon; at the same time, we believe the company is expected to make a forward-looking layout in the field of innovative drugs, creating a new bright spot for the company's main pharmaceutical business. Profit forecasts and investment advice. Taking into account mergers and other factors, we expect the company's EPS for 2015-2017 to be 0.43 yuan, 0.51 yuan, and 0.61 yuan respectively, with year-on-year increases of 87%, 20%, and 20%, respectively. Considering the company's strategic layout in the field of medical rehabilitation, the company was given a target price of 16.80 yuan. The corresponding company's PE in 2015-2017 was 39, 30, and 25 times, respectively. Combined with the current stock price of 14.20 yuan, it was given an “increase in holdings” rating. Risk warning. The progress of medical rehabilitation programs has fallen short of expectations.